Growth,Distribution, and External Constraints: A Post-Kaleckian Model Applied to Brazil |
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Authors: | Douglas Alencar Frederico G Jayme Gustavo Britto |
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Institution: | 1. Federal University of Pará, Belem, Brazil dalencar@ufpa.brhttps://orcid.org/0000-0002-6077-998X;3. Federal University of Minas Gerais, Belo Horizonte, Brazil https://orcid.org/0000-0002-4617-0107;4. Federal University of Minas Gerais, Belo Horizonte, Brazil https://orcid.org/0000-0002-5285-3684 |
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Abstract: | ABSTRACT The purpose of this research is to analyze whether the Brazilian economy behaved under a wage-led or profit-led regime between 1960 and 2011, considering a Post-Kaleckian model in a context of external constraints. The time span is limited by data availability (i.e., 2011). To answer the question of whether the Brazilian economy works under a wage-led or profit-led regime, we propose a simple Post-Kaleckian model. The model suggests that a profit-led regime is more probable for Brazil. Moreover, a wage-led regime occurs when a balance of payments constrained growth model is taken into consideration. Likewise, the real exchange rate has a positive impact on economic growth through the export channel. This result is a novelty in the recent literature about the relationship between real exchange rate and economic growth within a Post-Kaleckian model. The Brazilian economy was chosen as it is one of the biggest economies in Latin America. |
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Keywords: | Post-Kaleckian theory external constraint productivity wage-led profit-led |
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